Hi All For those members who short stocks and are profitable, what fundamental critera do you find important before you consider a short. I'm not looking for "Trade Secrets" but if you want to tell all that's o.k too, but stuff like volume, float, rs,eps, institutional ownership, short intrest etc... Thanks. Mark
If I could be so bold as to add another question on shorts for our experienced members, If you screw up and hold a short on the ex-dividend day, what time of day counts for the ownership, and hence the responsibility for paying the dividend?
I like to short stocks that have gaped up. The larger the gap the better because those gaps have to get filled a some point. - nathan
Same as longs - overnight. If ex-date is the 27th, and you are short overnight on the 26th into the morning of the 27th (i.e. short as of the end of trade date 26th), you owe the dividend. For US equities, the latest public ECN closing time (BRUT, INET, ARCA) is 20:00 ET. There may be block-crossing platforms with later EOD times.
gaps down man, there's where da serious moneta can be made, look at mrvl today ... boy what a beauty. every day i see quite a few sobs that trend down all day long, and they are a joy to trade. look at this p.o.s:
Broad market direction and the look and feel of the stock. Most stocks tend to lag the index futs direction (there are always exceptions of course). So, heres a simple criteria: What are the futs doing? Is the DOW down 50pts or more before 10am? Mike P.S. A weak looking chart always helps.
I like to short future indices whether it be the FTSE DOW AUS 200. I feel I can gauge a short market better than a long market. Dont ask me y. I think when it comes to the DOW I look at the 30 DOW components and there weekly prognosis and charts. The FTSE will normally follow the DOW lead. It works well for me but everyone has there own method which they feel confortable with. PS I never short crude.